Tuesday, June 2, 2015

Financial Disasters

Chase Manhattan and their involvement with Drysdale Securities


http://financetrain.com/chase-manhattan-and-their-involvement-with-drysdale-securities/
http://www.nytimes.com/1982/05/20/business/lessons-in-drysdale-s-default.html

http://www.investinganswers.com/financial-dictionary/debt-bankruptcy/repurchase-agreement-repo-1630

https://www.youtube.com/watch?v=BbHheJwOiPQ

Trading Scandal at Kidder Peabody

http://www.nytimes.com/1994/08/05/us/behind-kidder-scandal-overview-kidder-scandal-tied-failure-supervision.html?pagewanted=2

http://financetrain.com/case-study-trading-scandal-at-kidder-peabody/


Nick Leeson & the Collapse of Barings Bank

http://www.thebubblebubble.com/barings-collapse/

http://aw-bc.com/scp/0321197488/assets/downloads/ch7.pdf
pdf
 Allied Irish Banks


http://mountainmentorsassociates.com/files/Case_Study_-_Allied_Irish_Banks.pdf

Friday, May 1, 2015

Short View about India's Budget Allocation to Public Educational Sector 2015-16

My politics have only one style, only one mantra and only one focus and that is development. And it means that there should be change in the lives of the poor people. Their children should get education, their parents should get medicine. And there should be concrete house in place of jhuggis,

Narendra Modi, our Prime Minister said during Delhi election campaign on Feb 4th 2015(1). 

He said about education, health care and housing during Delhi election rally to get votes from voters. However, in reality, his mantras are unlikely true. This article is about his one of the mantra, i.e. Education in the recent central government budget 2015-16 presented by BJP led government to the parliament on February 28th 2015.

Educational Sector

Table 1 (Source (5)

Department
Revised 2014-15
2015-16
Department School Education & Literacy
Plan(Cr)
Non Plan(Cr)
Total(Cr)

Plan(Cr)
Non Plan(Cr)
Total(Cr)

43,517.90
3,287.10
46,805
39,038.50
3,181
42,219.50
Department of Higher Education
13,000
10,700
23,700
15,855.26
11,000
26,855.26
Total
56,517.90
13,987.10
70,505
54,893.76
14,181
69,074.76

At times, when government is expecting the GDP growth above 5% and crude oil price is less under $50 per barrel, government didn’t increase expenditure in the public education sector, but government reduced the budget allocation for the education sector marginally. Government allocates nearly 69,074 crore of rupees for this year, which is 1431 crore less compared to last year. Last year, Rs. 70,505 crore was allocated in the revised budget, and government reduced the funding in the education department by 2 % in this year. 

Table 2

Age Group
Population (Crores)
0-6
15                                                                     (Source 2)
Less than 18
47.2                                                                 (Source 4)
Less than 25
62.5                                                                (Source 3)

Table 3

Age group
Population (Cr)
Amount per Person per year
Amount Per Month ( 10 Months as 2 Months Vacation
6-18 (School Age group)
32.2
Rs. 1319
131
18-24 (Higher Education age group)
15.3
Rs.1755
175
6-24 (Total Education)
47.5
Rs. 1454
145


10 % expenditure reduced in Department of School Education:

Everybody knew that school education is the building blocks of child's future and future of this country. There are nearly 32.2 crores children in India between the age 6-18, and they are all should have been in schools. In the recent budget, government spends just Rs.1319 per Indian child per year. The government reduced Rs. 4585.5 crores in this budget compared to the last year. The total expenditure for school department will be around Rs.42,219 crores for this year, which is nearly 10 % less compared to the last year. The government allocated Rs.46,805 crores for school education in the last revised interim budget.
  
90 % slashed in Mid Day Meal.

In this budget, there is great reduction of allocation for the mid-day meal scheme. The central government slashed nearly 90 % of allocation for the mid day meal scheme. Government allocated only Rs. 132 crores this year compares to Rs.1, 296.5 crore the last year (8).

Thriving private school business

Recently, government implemented regulation regarding a student-teacher ratio which is needed to be 40:1. When government is imposing such rules, it is essential that government needs to increase the number of schools and allocating more funds to the department of school education unlike reducing the amount meant for it and asking state governments to look after the educational sector. The sources of income for state governments are very less compared to the central government. This budget reduction only helps private schools where some schools are charging more than 1 lakh of rupees for teaching basics alphabets and numerical in their kindergarten schools. 

Children going to private schools increased 40 % in rural areas in the last ten years 

At present, nearly 1 in 3 rural area children (30.3%) are studying in private schools, already 40 % increased compared to the last ten years. In urban areas, it is much higher. Around 75 % children are studying in private schools (9). Government may cite reasons for reduction in allocation by saying quality standards are not raised in government schools as expected. It is the duty of the government to control, maintain and over view the quality standard in education rather blaming the outcome of the system. It indicates that government wants to cut down the expenditure by spending less in school education, which will affect the future of the future generation in this country.  

 Lack of evidence for private schools are better when compare to public schools.

There is no strong adequate evidence from research that private education systems are good compared to public education in developing countries.

Below are some of the findings regarding private schools in developing countries according to UK’s Department for International Development (DFID), (10)  

1)      “Private school pupils may achieve better learning outcomes when compared with state schools. However, there is no adequate evidence for it.
2)      "It is also stated that many children may not be achieving basic competencies even in private schools".
3)      The cost of education delivery is lower in private schools than state schools often due to lower salaries for private school teachers compared with their government school counterparts
From this it is clear that state sponsor schools can perform better compared to private running schools

Higher Education in India:

In order to boost investment from foreign players, government is trying to project as if they are allocating more amount of money in higher education in India. They didn’t actually increase the investment, they have taken the allocation which is meant for primary education department and re distributed to higher education department. There are 15 crore of people in the age group between which is 18-24  which is nearly 10 % of the population qualifies for higher education in India. Government is spending nearly 1755 rupees per person annually.

India's Higher education is $100 Billion Market 

It was estimated that Indian education market is about Rs 675,000 crore ($109.84 billion) in this year. However, government is spending around 9.7 % of the country's requirement. It shows that private players continue to use the opportunity from lack of government investment in the educational sector to get a piece of market share in 600,000 crores business.  

According to Yogendra Yadav, at present expelled from AAP party is also a former member of the University Grants Commission (UGC). He once said that “more than 100 MPs actually own or run private higher educational institutions and HRD ministry (that covers education) actually nominated people running private educational institutes to the UGC (responsible for setting educational standards)”.

Since politicians are running private-education institutions, it is obvious that they frame rules according to their advantage rather thinking about common people. The private players will continue to dominate the higher education in this country, because of lack of funding from government. We can see the results as many new colleges are getting started every year. The aim is not to help students to get knowledge but likely to usurp money from parents who are willing to pay more amounts for their children's education. 

Raise of Social Economical issues

BBC documentary India's Daughter on Gang rape held in Delhi in 2012 provides insight about victim and accused family's social and economical backgrounds. Victim’s parents sold their agricultural lands to support their daughter’s education. She also worked in a call center to meet their educational expenses. On the other side, all the accused didn’t have proper school education. It just a sample picture of  economic and social situation in this country. One section among the people is selling their asset to meet their children higher education expenditure so that their children will have a better future. On the other side, people without proper school education, are turning into criminals. These kinds of scenarios can be reduced or removed, only if the government take priority steps to improve the educational system in this country. 

Sustainable-Development – Emphasis on children education.

The Bhartiya Janata Party (BJP) government led by Narendra Modi often uses the word “Development” in their propaganda. For them, development means bringing more investment to the country, relaxing rules and cutting down red tapes in bureaucracy to make sure investors shouldn't be at loss and helping them to get more returns on investment.

But according to UN, development will sustain only if governments emphasis on education for all children is the foremost step for a sustainable development alongside ending extreme poverty, hunger, and death from preventable and treatable causes (11). From this it clearly shows that, government development will sustain only if children education is taken care by 

Conclusion

Indian economy will be greater than 2 trillion-dollar economy in this year. However, government at present spends nearly 6 % of GDP on total education and just 1.5 % of GDP on higher education. When India is aiming to become a super power, they should increase the allocation of funds to the education department for betterment of future generation's social and economic conditions. 

5 % reduction in corporate tax 

Our government wants to reduce corporate tax to 25 % from the present 30 % in coming years citing to have a competitive advantage among other countries to attract investments. When develop nations want to increase the allocation in education to turn their country’s economy towards the knowledge-based economy in the future. The knowledge-based economy is proposed as a future economic model as development of low cost robotics and automation in the manufacturing sector which will drastically reduce necessity of labours in the manufacturing industry(12). India will lose the competitive advantage compare to other countries in the longer run in the future if it is not provide adequate priority to education sector at present.

 The aim of the private educational institutes will be making profits rather than providing quality education to the people. Only government can provide quality education at lower cost. IITs, NITs, Regional government colleges, Kendra vidyalas are the examples for the above statement. It is unclear that if our prime minister’s main political mantra is children education, then why there is a reduction in funds. From his actions, it seems that education may not be his main mantra.  

References:


5)                    indiadidac.com/blog/item/337-union-budget-2015-16-highlights-for-education-employment-and-skill-development

11)                https://sustainabledevelopment.un.org/sdgsproposal

Sunday, May 5, 2013

Short View about Indian Economy , Agriculture , Unemployment


In 1991, India faced severe economic crisis in the history. India had foreign exchange reserve that could last only for three weeks to pay for its essential imports. India asked to pledge 67 tons of gold assets to one of the world pawn broker International Monetary Fund (IMF). India airlifted its gold to Bank of England and Union Bank of Switzerland to secure a loan of $2.2 Billion. Though India’s present situation is not the same as that of 1991 but figures by IMF makes us to fear that India may head back to the situation.

IMF initially predicted the GDP growth would be at 5%. It is the main reason to worry because it is the lowest growth in the past ten years. However, on May 1, 2013, it changed it’s forecasted to 5.8 % for this current fiscal year. As the global economy is going through a stagnant growth phase, it is also affecting the Indian economy.

Indian IT, Manufacturing and Service sectors benefited a lot from globalization. Agricultural sector is the largest job producing sector for the people in the country. When other sectors achieved double-digit growth, but the agriculture sector is just growing at an average of 3.4 % from 2004."Slow agricultural growth is a concern for policymakers as some two-thirds of India’s people depend on rural employment for a living… Farmers' access to markets is hampered by poor roads, rudimentary market infrastructure, and excessive regulation." The above were said by World Bank in a report about India. When there is a need for huge investment into the agriculture sector, but the Prime Minister Manmohan Singh asking people to move out of agriculture to other the non-agricultural sectors (1). This is just an example how our governments neglected and neglecting the dominant sector of the country.

GDP (Gross Domestic Product) is a measure of country’s production or income. In a simple manner, it is the sum of incomes all people living in a country. When GDP growth declines mean total production of all sectors in the country is also decreasing. When production declines, it will result in job loss across sectors.

By 2020, the average age of an Indian will be 29. The number of young people entering the workforce is growing every year. In the recent 2013-14 union government budget, it was mentioned that the government planned to provide training for 90 lakhs people this year to improve their skill. Coming years will tell how many people got trained, and how many were benefited from the program.

From the history, it is a well-known fact that investors reluctant to invest when a growth rate reduces. The current government policies benefited a few big capitalists rather than small industrialists. Already many Indian and foreign companies wanted to modify our labour's laws to suit them. It is said that around 200 laws were in place to protect the interest of the workers in india. Even after having laws, workers are not getting their due wages in many parts of the country. Government may utilize this opportunity of slow growth rate, to allow many foreign players, provides more benefits to them and there is a possibility that there may be a change in labour laws to suit them.

The worst thing the government can do to the country is keeping the young people unemployed. It seems governments do not want to encourage the major employable sector in the country, i.e. agriculture.Congress led UPA government want to project growth as its success in the past ten years to gain votes. However, the truth is neither growth nor success stories happening in India. Growth declines , unemployment among youth , drought situation creating fear among us that Indian economy may go to 1991 situation.

Friday, November 16, 2012

Truth about NASA's image of India on Diwali





Indians around the world celebrate Diwali by lighting lamps, and firecrackers as part of celebration. But in Facebook, Many people shared a colorful picture of India on Diwali, which was taken from space by NASA. In the picture, Indian subcontinent was looking bright and colorful compared to other parts of the world. While seeing the picture many were assumed that the brightness was due to firing of crackers on that night.


Actually, the picture was brightened to highlight the concentration of population in the cities in Indian subcontinent. Brightness was not due to the burning crackers. The extra light produced by crackers is low, and it is barely visible when observed from space.


It can be explained by another example. When we travel on a flight, we could see a street light of the city on a night only when the flight nearing an airport.


Below is the true description of the image.


In 2012, it began on November 11. On November 12, 2012, the Visible Infrared Imaging Radiometer Suite (VIIRS) on the Suomi NPP satellite captured this nighttime view of southern Asia. The image is based on data collected by the VIIRS “day-night band,” which detects light in a range of wavelengths from green to near-infrared. The image has been brightened to make the city lights easier to distinguish. Most of the bright areas are cities and towns in India as India is home to more than 1.2 billion people and has 30 cities with populations over 1 million. Cities in Bangladesh, Nepal, and Pakistan are also visible at the edges of the image. That image, based on data from the Operational Linescan System flown on U.S. Defense Meteorological Satellite Program (DMSP) satellites, is a color-composite created in 2003 by NOAA scientist Chris Elvidge to highlight population growth over time. In that image, white areas show city lights that were visible prior to 1992, while blue, green, and red shades indicate city lights that became visible in 1992, 1998, and 2003 respectively.


Source : http://earthobservatory.nasa.gov/NaturalHazards/view.php?id=79682

Friday, May 18, 2012

The Musalman - Preservation of a Dream

The 'Musalman' is probably the last handwritten newspaper in the world. It has been published and read every day in South India's Chennai since 1927 in almost the same form. In the shadow of the Wallajah Mosque in Chennai, a team of six die hard workers still put out this hand-penned paper. Four of them are katibs -- writers dedicated to the ancient art of Urdu calligraphy. It's tough for the die-hard artists of Urdu calligraphy. But the story we tell here is not just of their desperation and despair. The fact is, at the office of 'The Musalman', the oldest Urdu daily in India, no one has ever quit. They work till they pass on. This is the story we tell.

Monday, August 15, 2011

Why I am an Atheist by Bhagat Singh (1931)

It is a matter of debate whether my lack of belief in the existence of an Omnipresent, Omniscient God is due to my arrogant pride and vanity. It never occurred to me that sometime in the future I would be involved in polemics of this kind. As a result of some discussions with my friends, (if my claim to friendship is not uncalled for) I have realised that after having known me for a little time only, some of them have reached a kind of hasty conclusion about me that my atheism is my foolishness and that it is the outcome of my vanity. Even then it is a serious problem. I do not boast of being above these human follies. I am, after all, a human being and nothing more. And no one can claim to be more than that. I have a weakness in my personality, for pride is one of the human traits that I do possess. I am known as a dictator among my friends. Sometimes I am called a boaster. Some have always been complaining that I am bossy and I force others to accept my opinion. Yes, it is true to some extent. I do not deny this charge. We can use the word ‘vainglory’ for it. As far as the contemptible, obsolete, rotten values of our society are concerned, I am an extreme sceptic. But this question does not concern my person alone. It is being proud of my ideas, my thoughts. It cannot be called empty pride. Pride, or you may use the word, vanity, both mean an exaggerated assessment of one’s personality. Is my atheism because of unnecessary pride, or have I ceased believing in God after thinking long and deep on the matter? I wish to put my ideas before you. First of all, let us differentiate between pride and vanity as these are two different things.


I have never been able to understand how unfounded, baseless pride or empty vanity can hinder a person from believing in God. I may refuse to acknowledge the greatness of a really great person only when I have got fame without doing any serious efforts or when I lack the superior mental powers necessary to become great. It is easy to understand but how is it possible that a believer can turn into a non-believer because of his vanity? Only two things are possible: either a man deems himself to be in possession of Godly qualities, or he goes a step further and declares himself to be a god. In both these states of mind he cannot be an atheist in the true sense of the word. In the first case, it is not an outright rejection of God’s existence; in the other, he is affirming the existence of some kind of supernatural power responsible for the working of universe. It does not harm our argument whether he claims to be a god or considers God to be a reality in existence above his own being. The real point, however, is that in both cases he is a theist, a believer. He is not an atheist. I want to bring home this point to you. I am not one of these two creeds. I totally reject the existence of an Omnipresent, all powerful, all knowing God. Why so? I will discuss it later in the essay. Here I wish to emphasise that I am not an atheist for the reason that I am arrogant or proud or vain; nor am I a demi-god, nor a prophet; no, nor am I God myself. At least one thing is true that I have not evolved this thought because of vanity or pride. In order to answer this question I relate the truth. My friends say that after Delhi bombing and Lahore Conspiracy Case, I rocketed to fame and that this fact has turned my head. Let us discuss why this allegation is incorrect. I did not give up my belief in God after these incidents. I was an atheist even when I was an unknown figure. At least a college student cannot cherish any sort of exaggerated notion of himself that may lead him to atheism. It is true that I was a favourite with some college teachers, but others did not like me. I was never a hardworking or studious boy. I never got an opportunity to be proud. I was very careful in my behaviour and somewhat pessimistic about my future career. I was not completely atheistic in my beliefs. I was brought up under the care and protection of my father. He was a staunch Arya Samaji. An Arya Samaji can be anything but never an atheist. After my elementary education, I was sent to D. A. V College, Lahore. I lived in the boarding house for one year. Besides prayers early in the morning and at dusk time, I sat for hours and chanted religious Mantras. At that time, I was a staunch believer. Then I lived with my father. He was a tolerant man in his religious views. It is due to his teachings that I devoted my life for the cause of liberating my country. But he was not an atheist. His God was an all-pervading Entity. He advised me to offer my prayers every day. In this way I was brought up. In the Non-cooperation days, I got admission to the National College. During my stay in this college, I began thinking over all the religious polemics such that I grew sceptical about the existence of God. In spite of this fact I can say that my belief in God was firm and strong. I grew a beard and ‘Kais’ (long head of hair as a Sikh religious custom). In spite of this I could not convince myself of the efficacy of Sikh religion or any religion at all, for that matter. But I had an unswerving, unwavering belief in God.

Then I joined the Revolutionary Party. The first leader I met had not the courage to openly declare himself an atheist. He was unable to reach any conclusion on this point. Whenever I asked him about the existence of God, he gave me this reply: “You may believe in him when you feel like it.” The second leader with whom I came in contact was a firm believer. I should mention his name. It was our respected Comrade Sachindara Nath Sanyal. He was sentenced to life imprisonment in connection with Karachi conspiracy case. Right from the first page of his only book, ‘Bandi Jivan’ (Incarnated Life) he sings praises to the Glory of God. See the last page of the second part of this book and you find praises showered upon God in the way of a mystic. It is a clear reflection of his thoughts.

According to the prosecution, the ‘Revolutionary Leaflet’ which was distributed throughout India was the outcome of Sachindara Nath Sanyal’s intellectual labour. So often it happens that in revolutionary activities a leader expresses his own ideas which may be very dear to him, but in spite of having differences, the other workers have to acquiesce in them.

In that leaflet, one full paragraph was devoted to the praises of God and His doings which we, human beings, cannot understand. This is sheer mysticism. What I want to point out is that the idea of denying the existence of God did not even occur to the Revolutionary Party. The famous Kakory martyrs, all four of them, passed their last day in prayers. Ram Parshad Bismal was a staunch Arya Samaji. In spite of his vast studies in Socialism and Communism, Rajan Lahiri could not suppress his desire to recite hymns from Upanishads and Gita. There was but only one person among them who did not indulge in such activities. He used to say, “Religion is the outcome of human weakness or the limitation of human knowledge.” He is also in prison for life. But he also never dared to deny the existence of God.

Till that time I was only a romantic revolutionary, just a follower of our leaders. Then came the time to shoulder the whole responsibility. For some time, a strong opposition put the very existence of the party into danger. Many leaders as well as many enthusiastic comrades began to uphold the party to ridicule. They jeered at us. I had an apprehension that some day I will also consider it a futile and hopeless task. It was a turning point in my revolutionary career. An incessant desire to study filled my heart. ‘Study more and more’, said I to myself so that I might be able to face the arguments of my opponents. ‘Study’ to support your point of view with convincing arguments. And I began to study in a serious manner. My previous beliefs and convictions underwent a radical change. The romance of militancy dominated our predecessors; now serious ideas ousted this way of thinking. No more mysticism! No more blind faith! Now realism was our mode of thinking. At times of terrible necessity, we can resort to extreme methods, but violence produces opposite results in mass movements. I have talked much about our methods. The most important thing was a clear conception of our ideology for which we were waging a long struggle. As there was no election activity going on, I got ample opportunity to study various ideas propounded by various writers. I studied Bakunin, the anarchist leader. I read a few books of Marx, the father of Communism. I also read Lenin and Trotsky and many other writers who successfully carried out revolutions in their countries. All of them were atheists. The ideas contained in Bakunin’s ‘God and State’ seem inconclusive, but it is an interesting book. After that I came across a book ‘Common Sense’ by Nirlamba Swami. His point of view was a sort of mystical atheism. I developed more interest in this subject. By the end of 1926, I was convinced that the belief in an Almighty, Supreme Being who created, guided and controlled the universe had no sound foundations. I began discussions on this subject with my friends. I had openly declared myself an atheist. What it meant will be discussed in the following lines.

In May 1927, I was arrested in Lahore. This arrest came as a big surprise for me. I had not the least idea that I was wanted by the police. I was passing through a garden and all of a sudden the police surrounded me. To my own surprise, I was very calm at that time. I was in full control of myself. I was taken into police custody. The next day I was taken to the Railway Police lockup where I spent a whole month. After many days’ conversation with police personnel, I guessed that they had some information about my connection with the Kakori Party. I felt they had some intelligence of my other activities in the revolutionary movement. They told me that I was in Lucknow during the Kakori Party Trial so that I might devise a scheme to rescue the culprits. They also said that after the plan had been approved, we procured some bombs and by way of test, one of those bombs was thrown into a crowd on the occasion of Dussehra in 1926. They offered to release me on condition that I gave a statement on the activities of the Revolutionary Party. In this way I would be set free and even rewarded and I would not be produced as an approver in the court. I could not help laughing at their proposals. It was all humbug. People who have ideas like ours do not throw bombs at their own innocent people. One day, Mr. Newman, the then senior Superintendent of CID, came to me. After a long talk which was full of sympathetic words, he imparted to me what he considered to be sad news, that if I did not give any statement as demanded by them, they would be forced to send me up for trial for conspiracy to wage war in connection with Kakori Case and also for brutal killings in Dussehra gathering. After that he said that he had sufficient evidence to get me convicted and hanged.

I was completely innocent, but I believed that the police had sufficient power to do it if they desired it to be so. The same day some police officers persuaded me to offer my prayers to God two times regularly. I was an atheist. I thought that I would settle it to myself whether I could brag only in days of peace and happiness that I was an atheist, or in those hard times I could be steadfast in my convictions. After a long debate with myself, I reached the conclusion that I could not even pretend to be a believer nor could I offer my prayers to God. No, I never did it. It was time of trial and I would come out of it successful. These were my thoughts. Never for a moment did I desire to save my life. So I was a true atheist then and I am an atheist now. It was not an easy task to face that ordeal. Beliefs make it easier to go through hardships, even make them pleasant. Man can find a strong support in God and an encouraging consolation in His Name. If you have no belief in Him, then there is no alternative but to depend upon yourself. It is not child’s play to stand firm on your feet amid storms and strong winds. In difficult times, vanity, if it remains, evaporates and man cannot find the courage to defy beliefs held in common esteem by the people. If he really revolts against such beliefs, we must conclude that it is not sheer vanity; he has some kind of extraordinary strength. This is exactly the situation now. First of all we all know what the judgement will be. It is to be pronounced in a week or so. I am going to sacrifice my life for a cause. What more consolation can there be! A God-believing Hindu may expect to be reborn a king; a Muslim or a Christian might dream of the luxuries he hopes to enjoy in paradise as a reward for his sufferings and sacrifices. What hope should I entertain? I know that will be the end when the rope is tightened round my neck and the rafters move from under my feet. To use more precise religious terminology, that will be the moment of utter annihilation. My soul will come to nothing. If I take the courage to take the matter in the light of ‘Reward’, I see that a short life of struggle with no such magnificent end shall itself be my ‘Reward.’ That is all. Without any selfish motive of getting any reward here or in the hereafter, quite disinterestedly have I devoted my life to the cause of freedom. I could not act otherwise. The day shall usher in a new era of liberty when a large number of men and women, taking courage from the idea of serving humanity and liberating them from sufferings and distress, decide that there is no alternative before them except devoting their lives for this cause. They will wage a war against their oppressors, tyrants or exploiters, not to become kings, or to gain any reward here or in the next birth or after death in paradise; but to cast off the yoke of slavery, to establish liberty and peace they will tread this perilous, but glorious path. Can the pride they take in their noble cause be called vanity? Who is there rash enough to call it so? To him I say either he is foolish or wicked. Leave such a fellow alone for he cannot realise the depth, the emotions, the sentiment and the noble feelings that surge in that heart. His heart is dead, a mere lump of flesh, devoid of feelings. His convictions are infirm, his emotions feeble. His selfish interests have made him incapable of seeing the truth. The epithet ‘vanity’ is always hurled at the strength we get from our convictions.

You go against popular feelings; you criticise a hero, a great man who is generally believed to be above criticism. What happens? No one will answer your arguments in a rational way; rather you will be considered vainglorious. Its reason is mental insipidity. Merciless criticism and independent thinking are the two necessary traits of revolutionary thinking. As Mahatmaji is great, he is above criticism; as he has risen above, all that he says in the field of politics, religion, Ethics is right. You agree or not, it is binding upon you to take it as truth. This is not constructive thinking. We do not take a leap forward; we go many steps back.

Our forefathers evolved faith in some kind of Supreme Being, therefore, one who ventures to challenge the validity of that faith or denies the existence of God, shall be called a Kafir (infidel), or a renegade. Even if his arguments are so strong that it is impossible to refute them, if his spirit is so strong that he cannot be bowed down by the threats of misfortune that may befall him through the wrath of the Almighty, he shall be decried as vainglorious. Then why should we waste our time in such discussions? This question has come before the people for the first time, hence the necessity and usefulness of such long discussions.

As far as the first question is concerned, I think I have made it clear that I did not turn atheist because of vanity. Only my readers, not I, can decide whether my arguments carry weight. If I were a believer, I know in the present circumstances my life would have been easier; the burden lighter. My disbelief in God has turned all the circumstances too harsh and this situation can deteriorate further. Being a little mystical can give the circumstances a poetic turn. But I need no opiate to meet my end. I am a realistic man. I want to overpower this tendency in me with the help of Reason. I am not always successful in such attempts. But it is man’s duty to try and make efforts. Success depends on chance and circumstances.

Now we come to the second question: if it is not vanity, there ought to be some sound reason for rejection of age-old belief in God. Yes, I come to this question. I think that any man who has some reasoning power always tries to understand the life and people around him with the help of this faculty. Where concrete proofs are lacking, [mystical] philosophy creeps in. As I have indicated, one of my revolutionary friends used to say that “philosophy is the outcome of human weakness.” Our ancestors had the leisure to solve the mysteries of the world, its past, its present and its future, its whys and its wherefores, but having been terribly short of direct proofs, every one of them tried to solve the problem in his own way. Hence we find wide differences in the fundamentals of various religious creeds. Sometimes they take very antagonistic and conflicting forms. We find differences in Oriental and Occidental philosophies. There are differences even amongst various schools of thoughts in each hemisphere. In Asian religions, the Muslim religion is completely incompatible with the Hindu faith. In India itself, Buddhism and Jainism are sometimes quite separate from Brahmanism. Then in Brahmanism itself, we find two conflicting sects: Aarya Samaj and Snatan Dheram. Charwak is yet another independent thinker of the past ages. He challenged the Authority of God. All these faiths differ on many fundamental questions, but each of them claims to be the only true religion. This is the root of the evil. Instead of developing the ideas and experiments of ancient thinkers, thus providing ourselves with the ideological weapon for the future struggle, – lethargic, idle, fanatical as we are – we cling to orthodox religion and in this way reduce human awakening to a stagnant pool.

It is necessary for every person who stands for progress to criticise every tenet of old beliefs. Item by item he has to challenge the efficacy of old faith. He has to analyse and understand all the details. If after rigorous reasoning, one is led to believe in any theory of philosophy, his faith is appreciated. His reasoning may be mistaken and even fallacious. But there is chance that he will be corrected because Reason is the guiding principle of his life. But belief, I should say blind belief is disastrous. It deprives a man of his understanding power and makes him reactionary.

Any person who claims to be a realist has to challenge the truth of old beliefs. If faith cannot withstand the onslaught of reason, it collapses. After that his task should be to do the groundwork for new philosophy. This is the negative side. After that comes in the positive work in which some material of the olden times can be used to construct the pillars of new philosophy. As far as I am concerned, I admit that I lack sufficient study in this field. I had a great desire to study the Oriental Philosophy, but I could get ample opportunity or sufficient time to do so. But so far as I reject the old time beliefs, it is not a matter of countering belief with belief, rather I can challenge the efficacy of old beliefs with sound arguments. We believe in nature and that human progress depends on the domination of man over nature. There is no conscious power behind it. This is our philosophy.

Being atheist, I ask a few questions from theists:

1. If, as you believe there is an Almighty, Omnipresent, Omniscient God, who created the earth or universe, please let me know, first of all, as to why he created this world. This world which is full of woe and grief, and countless miseries, where not even one person lives in peace.

2. Pray, don’t say it is His law. If He is bound by any law, He is not Omnipotent. Don’t say it is His pleasure. Nero burnt one Rome. He killed a very limited number of people. He caused only a few tragedies, all for his morbid enjoyment. But what is his place in history? By what names do we remember him? All the disparaging epithets are hurled at him. Pages are blackened with invective diatribes condemning Nero: the tyrant, the heartless, the wicked.

One Genghis Khan killed a few thousand people to seek pleasure in it and we hate the very name. Now, how will you justify your all powerful, eternal Nero, who every day, every moment continues his pastime of killing people? How can you support his doings which surpass those of Genghis Khan in cruelty and in misery inflicted upon people? I ask why the Almighty created this world which is nothing but a living hell, a place of constant and bitter unrest. Why did he create man when he had the power not to do so? Have you any answer to these questions? You will say that it is to reward the sufferer and punish the evildoer in the hereafter. Well, well, how far will you justify a man who first of all inflicts injuries on your body and then applies soft and soothing ointment on them? How far the supporters and organizers of Gladiator bouts were justified in throwing men before half starved lions, later to be cared for and looked after well if they escaped this horrible death. That is why I ask: Was the creation of man intended to derive this kind of pleasure?

Open your eyes and see millions of people dying of hunger in slums and huts dirtier than the grim dungeons of prisons; just see the labourers patiently or say apathetically while the rich vampires suck their blood; bring to mind the wastage of human energy that will make a man with a little common sense shiver in horror. Just observe rich nations throwing their surplus produce into the sea instead of distributing it among the needy and deprived. There are palaces of kings built upon the foundations laid with human bones. Let them see all this and say “All is well in God’s Kingdom.” Why so? This is my question. You are silent. All right. I proceed to my next point.

You, the Hindus, would say: Whosoever undergoes sufferings in this life, must have been a sinner in his previous birth. It is tantamount to saying that those who are oppressors now were Godly people then, in their previous births. For this reason alone they hold power in their hands. Let me say it plainly that your ancestors were shrewd people. They were always in search of petty hoaxes to play upon people and snatch from them the power of Reason. Let us analyse how much this argument carries weight!

Those who are well versed in the philosophy of Jurisprudence relate three of four justifications for the punishment that is to be inflicted upon a wrong-doer. These are: revenge, reform, and deterrence. The Retribution Theory is now condemned by all the thinkers. Deterrent theory is on the anvil for its flaws. Reformative theory is now widely accepted and considered to be necessary for human progress. It aims at reforming the culprit and converting him into a peace-loving citizen. But what in essence is God’s Punishment even if it is inflicted on a person who has really done some harm? For the sake of argument we agree for a moment that a person committed some crime in his previous birth and God punished him by changing his shape into a cow, cat, tree, or any other animal. You may enumerate the number of these variations in Godly Punishment to be at least eighty-four lack. Tell me, has this tomfoolery, perpetrated in the name of punishment, any reformative effect on human man? How many of them have you met who were donkeys in their previous births for having committed any sin? Absolutely no one of this sort! The so called theory of ‘Puranas’ (transmigration) is nothing but a fairy-tale. I do not have any intention to bring this unutterable trash under discussion. Do you really know the most cursed sin in this world is to be poor? Yes, poverty is a sin; it is a punishment! Cursed be the theoretician, jurist or legislator who proposes such measures as push man into the quagmire of more heinous sins. Did it not occur to your All Knowing God or he could learn the truth only after millions had undergone untold sufferings and hardships? What, according to your theory, is the fate of a person who, by no sin of his own, has been born into a family of low caste people? He is poor so he cannot go to a school. It is his fate to be shunned and hated by those who are born into a high caste. His ignorance, his poverty, and the contempt he receives from others will harden his heart towards society. Supposing that he commits a sin, who shall bear the consequences? God, or he, or the learned people of that society? What is your view about those punishments inflicted on the people who were deliberately kept ignorant by selfish and proud Brahmans? If by chance these poor creatures heard a few words of your sacred books, Vedas, these Brahmans poured melted lead into their ears. If they committed any sin, who was to be held responsible? Who was to bear the brunt? My dear friends, these theories have been coined by the privileged classes. They try to justify the power they have usurped and the riches they have robbed with the help of such theories. Perhaps it was the writer Upton Sinclair who wrote (Bhagat Singh is referring to Sinclair’s pamphlet ‘Profits of Religion’ – MIA transcriber) somewhere “only make a man firm believer in the immortality of soul, then rob him of all that he possesses. He will willingly help you in the process.” The dirty alliance between religious preachers and possessors of power brought the boon of prisons, gallows, knouts and above all such theories for the mankind.

I ask why your Omnipotent God does not hold a man back when he is about to commit a sin or offence. It is child’s play for God. Why did He not kill war lords? Why did He not obliterate the fury of war from their minds? In this way He could have saved humanity of many a great calamity and horror. Why does He not infuse humanistic sentiments into the minds of the Britishers so that they may willingly leave India? I ask why He does not fill the hearts of all capitalist classes with altruistic humanism that prompts them to give up personal possession of the means of production and this will free the whole labouring humanity from the shackles of money. You want to argue the practicability of Socialist theory, I leave it to your Almighty God to enforce it. Common people understand the merits of Socialist theory as far as general welfare is concerned but they oppose it under the pretext that it cannot be implemented. Let the Almighty step in and arrange things in a proper way. No more logic chopping! I tell you that the British rule is not there because God willed it but for the reason that we lack the will and courage to oppose it. Not that they are keeping us under subjugation with the consent of God, but it is with the force of guns and rifles, bombs and bullets, police and militia, and above all because of our apathy that they are successfully committing the most deplorable sin, that is, the exploitation of one nation by another. Where is God? What is He doing? Is He getting a diseased pleasure out of it? A Nero! A Genghis Khan! Down with Him!

Now another piece of manufactured logic! You ask me how I will explain the origin of this world and origin of man. Charles Darwin has tried to throw some light on this subject. Study his book. Also, have a look at Sohan Swami’s “Commonsense.” You will get a satisfactory answer. This topic is concerned with Biology and Natural History. This is a phenomenon of nature. The accidental mixture of different substances in the form of Nebulae gave birth to this earth. When? Study history to know this. The same process caused the evolution of animals and in the long run that of man. Read Darwin’s ‘Origin of Species.’ All the later progress is due to man’s constant conflict with nature and his efforts to utilise nature for his own benefit. This is the briefest sketch of this phenomenon.

Your next question will be why a child is born blind or lame even if he was not a sinner in his previous birth. This problem has been explained in a satisfactory manner by biologists as a mere biological phenomenon. According to them the whole burden rests upon the shoulders of parents whose conscious or unconscious deeds caused mutilation of the child prior to his birth.

You may thrust yet another question at me, though it is merely childish. The question is: If God does not really exist, why do people come to believe in Him? Brief and concise my answer will be. As they come to believe in ghosts, and evil spirits, so they also evolve a kind of belief in God: the only difference being that God is almost a universal phenomenon and well developed theological philosophy. However, I do disagree with radical philosophy. It attributes His origin to the ingenuity of exploiters who wanted to keep the people under their subjugation by preaching the existence of a Supreme Being; thus claimed an authority and sanction from Him for their privileged position. I do not differ on the essential point that all religions, faiths, theological philosophies, and religious creeds and all other such institutions in the long run become supporters of the tyrannical and exploiting institutions, men and classes. Rebellion against any king has always been a sin in every religion.

As regard the origin of God, my thought is that man created God in his imagination when he realized his weaknesses, limitations and shortcomings. In this way he got the courage to face all the trying circumstances and to meet all dangers that might occur in his life and also to restrain his outbursts in prosperity and affluence. God, with his whimsical laws and parental generosity was painted with variegated colours of imagination. He was used as a deterrent factor when his fury and his laws were repeatedly propagated so that man might not become a danger to society. He was the cry of the distressed soul for he was believed to stand as father and mother, sister and brother, brother and friend when in time of distress a man was left alone and helpless. He was Almighty and could do anything. The idea of God is helpful to a man in distress.

Society must fight against this belief in God as it fought against idol worship and other narrow conceptions of religion. In this way man will try to stand on his feet. Being realistic, he will have to throw his faith aside and face all adversaries with courage and valour. That is exactly my state of mind. My friends, it is not my vanity; it is my mode of thinking that has made me an atheist. I don’t think that by strengthening my belief in God and by offering prayers to Him every day, (this I consider to be the most degraded act on the part of man) I can bring improvement in my situation, nor can I further deteriorate it. I have read of many atheists facing all troubles boldly, so I am trying to stand like a man with the head high and erect to the last; even on the gallows.

Let us see how steadfast I am. One of my friends asked me to pray. When informed of my atheism, he said, “When your last days come, you will begin to believe.” I said, “No, dear sir, Never shall it happen. I consider it to be an act of degradation and demoralisation. For such petty selfish motives, I shall never pray.” Reader and friends, is it vanity? If it is, I stand for it.

Wednesday, July 27, 2011

Manufactured Goods Lead Surge in Indian Exports


When Ranjit Date returned to India 20 years ago after earning a doctorate in robotics from an American university, he hoped to help automate factory assembly lines in his home country.



Ranjit Date, president of Precision Automation and Robotics, PUNE, India.

His company, Precision Automation and Robotics India, has done that. But more recently it has also begun selling robots to Western manufacturers like Caterpillar, Ford and Chrysler. This year, in fact, a third of Precision Automation’s sales will come from exports, up from almost nothing five years ago.

Mr. Date’s company is emblematic of a recent surge in exports of engineered and other sophisticated goods from India — a country perhaps better known for exports of skilled services like software outsourcing.

But in fact, Indian exports of goods are now nearly double exports of services, growing 37.5 percent, to $245.9 billion, in the 12 months that ended in March. Leading the way are high-value products like industrial machinery, automobiles and car parts, and refined petroleum products.

Indian exports are following a different path from that taken by other Asian countries like Japan, Korea and China. Those countries started by exporting products like garments and toys made by large numbers of low-paid, low-skilled workers, before moving to more sophisticated products like cars and industrial machinery.

India has largely skipped the first step and gone straight to producing capital-intensive items that require skilled workers but not necessarily many of them. Rather than pursue the traditional developing-country model of exports, India aspires to eventually achieve something more like Germany’s mix of industrial goods for the global market — even if India has a long way to go before approaching Germany’s $1.3 trillion in annual exports.

Over the last decade, industrial export hubs have sprouted around India, some with the help of government planning. Here in Pune, about 100 miles east of Mumbai, a vibrant domestic automotive and engineering hub supplies the United States and other Western markets.

Chennai in the south has become India’s Detroit, as car factories ship small Fords, Nissans and Hyundais to Europe, Africa and Latin America.

In the west, Gujarat State is home to several large petroleum refineries that take imported crude oil and process it into products like jet and diesel fuel that are sold in other Asian countries. (The need to import crude oil for domestic use, though, is the main reason India continues to run a trade deficit — $104.8 billion in the last fiscal year.)

Meanwhile, traditional exports like textiles and agricultural products together account for less than 20 percent of the goods India sells to the world. India now exports fewer garments than its neighbor Bangladesh, which has one-eighth India’s population and an economy only about one-fifteenth as large.

“India has moved away from the textiles story,” said Rohini Malkani, an economist at Citigroup in India. “Now, it’s engineering goods and chemicals, including pharmaceuticals.”

In many ways, these are virtues born of necessity. The country’s poor transportation and electricity infrastructure and restrictive labor laws have discouraged companies from setting up labor-intensive manufacturing plants like those for which China is known. Instead, many Indian exporters specialize in higher-value goods and services that require fewer, but more skilled, workers.

The flowering of these industrial bases can be traced to the early 1990s. That is when a financial crisis forced Indian policy makers to slough off socialist policies known as the “licenses raj,” which tightly regulated industrial production and kept foreign competition out. The changes let businesses set up factories based on market demand and allowed foreigners to invest in India, exposing domestic companies to greater competition.

“India is beginning to get its act together in terms of the productivity of its industrial sector,” said Eswar S. Prasad, an Indian-born economics professor at Cornell University. “Fundamentally, India always had a good productive base. And given the low base which we were starting from, it’s not surprising that India is doing so well.”

But still not as well as it could be. Some economists predict the Indian economy will grow by 7.5 percent this year, to $1.6 trillion. Such growth might thrill many countries, but it would be down from 8.5 percent last year. And it is below the 10 percent growth rate that many economists say India could achieve if it invested more in infrastructure and if the government further relaxed its tight grip on many parts of the economy.

The slowing growth is all the more reason the increase in industrial exports is a bright spot for India.

Here in Pune, manufacturers say exports are booming.

Mr. Date, the robotics entrepreneur, expects sales at his company to increase 20 percent this year, to $67 million. The company is building a second factory, a 150,000-square-foot plant on the outskirts of Pune, to keep up with demand for its robots and automated assembly lines. He said Precision Automation’s products were 10 to 50 percent less expensive than similar equipment made by Western suppliers.

Mr. Date started the business with a friend, Mangesh Kale, who, like him, grew up in Pune. After earning advanced degrees from Rensselaer Polytechnic Institute in Troy, N.Y., they returned to India in the early 1990s — just as policy makers were pushing through early economic changes.

At first many Indian manufacturers were unwilling to invest in robots, Mr. Date said, because labor in India was so cheap. But in the increasing global economy, Indian manufacturers had to improve productivity to meet rising demand and compete with foreign companies.

“We have grown in waves with the Indian economy,” he said.

In 2003, the company opened an office near Detroit and started winning small contracts to supply assembly line machinery and other equipment to auto parts makers. After a few years, it landed a small contract with Caterpillar, which has since become one of its biggest customers. It also won overseas orders from companies like Renault after supplying their Indian factories.

Analysts say Indian exporters like Precision Automation have performed admirably given the challenges they face. But for India to become an export powerhouse like China — which had exports of $1.58 trillion last year — policy makers must substantially improve its infrastructure, make labor regulations more flexible and improve basic education, said K. T. Chacko, director of the Indian Institute of Foreign Trade in New Delhi.

Mr. Date said his biggest challenge was finding, training and keeping qualified engineers. His company puts every entry-level engineer through a year of paid in-house training that he says costs it 1 million rupees (about $22,200) each, because college graduates do not have sufficient skills. About one-quarter of employees stay for just three years before jumping to other companies.

Infrastructure is another big concern. His factory receives power from the electric utility only about half the time, forcing him to rely on diesel generators.

Yet, roads and regulatory approvals are improving, Mr. Date said. As recently as five years ago, it took customs and tax authorities seven days to approve export shipments. That has been reduced to two days, he said.

“It is bearable,” he added, “but still needs improvement.”

Kuni Takahashi for The New York Times

http://www.nytimes.com/2011/07/26/business/media/manufactured-goods-lead-surge-in-indian-exports.html?_r=1&pagewanted=all